Groupon Sets IPO Date and Starts Holding Its Breath

Groupon has packaged a new deal, and it's going worldwide. The Internet coupon star will go public on Nov. with an IPO designed to raise as much as US$621 million, valuing the company at $11.4 billion. That's just 5 percent of the company's shares.

The filing reveals significant growth from last year

The filing reveals significant growth from last year. Third-quarter revenue rose to a whopping $430.1 million from $81.8 million. Marketing spending was ratcheted down to $181 million in the third quarter, or 42 percent of revenue -- down from 54 percent in the second quarter.

"They trashed Apple the other day. Apple stock took a $20 hit, and it was just because iPhone sales slumped during customers were waiting for the 4S," said DiDio. "There's no rhyme nor reason."

One of the criticisms of Groupon is that its coupon business could be easily replicated. Like as not its one advantage is a head start.

The surface

"On the surface, it would be easy to imitate, however you on the whole have to have the capital," said DiDio. "Nowadays, people are not so anxious to get into it. So yes, Groupon has a valid business model. Now they have to market it and differentiate it. Getting a head start isn't enough. Look at Yahoo."

"If I were Groupon, I would look at waiting a year," Jim McGregor, chief innovation strategist at In-Stat, told the E-Commerce Times. "Companies often rush to get out their IPOs. With Groupon, it's probably because they're facing so much competition."